India · Delayed Price · Currency is INR Zee Entertainment Enterprises Earnings Call Transcripts
Fiscal Year 2026
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Digital business posted its first positive EBITDA, with revenue up 73% year-on-year, while broadcast and music segments maintained strong market positions. Profit after tax doubled sequentially, and the company remains optimistic about advertising recovery and sustained digital growth.
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Q2 FY26 saw strong digital growth, with ZEE5 revenues up 32% YoY and EBITDA loss sharply reduced. Content investments and new launches increased costs, but management expects margin and revenue improvement in H2 as festive demand and policy reforms support recovery.
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Q1 FY26 saw stable profitability with EBITDA margin at 12.5% and 14% YoY PAT growth, driven by digital revenue and cost optimization. ZEE5 revenues rose 30% YoY, and the company maintained its 8% ad growth guidance, targeting 18%-20% EBITDA margin for FY26.
Fiscal Year 2025
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Management outlined a strategic transformation into a content and technology powerhouse, with major investments in regional content, digital expansion, and new business verticals. Financial performance improved, with a stronger balance sheet and enhanced governance, while shareholder engagement and transparency remain key priorities.
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Profitability improved in FY 2025 with a 50% reduction in ZEE5 losses and a 390 bps EBITDA margin increase, despite an 11% decline in ad revenue. Management targets 8%-10% revenue growth and 18%-20% margins in FY 2026, focusing on FTA re-entry, digital expansion, and content innovation.
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Margins expanded year-over-year due to cost control and subscription growth, despite ad revenue softness from macro headwinds. Profitability improved, with a strong balance sheet and cash position, while a one-time arbitration provision impacted net profit.
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EBITDA margin rose to 16% in Q2 FY25, driven by cost discipline and improved digital performance, while subscription revenue growth offset ad revenue decline. Cash position doubled YoY, and the company remains optimistic about festive season ad recovery and continued margin expansion.
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Q1 FY25 delivered improved margins and profit, driven by cost optimization and steady subscription growth, despite weak ad revenue due to sports and elections. Fundraising via FCCB will support future growth, and ZEE5 losses narrowed significantly.